Iraq-Türkiye deal will send 750,000 barrels of oil daily to Ceyhan

Under the annual agreement signed by Iraq and Türkiye on August 1, at least 750,000 barrels of crude oil are planned to be transported to Ceyhan each day. The target of supplying up to 1 million barrels of oil per day, announced by Iraqi Prime Minister Ali Falih al-Zaydi on July 28, could strengthen Ceyhan’s role in the regional energy corridor.

The annual agreement signed by Iraq and Türkiye on August 1 provides for the transportation of at least 750,000 barrels of crude oil per day to Ceyhan through the Iraq-Türkiye Oil Pipeline. Signed after Iraqi Prime Minister Ali Falih al-Zaydi announced on July 28 that Iraq was ready to send up to 1 million barrels of oil to Türkiye daily, the agreement expands the scope of energy cooperation between the two countries.

The aim is to use the pipeline, which has a technical capacity of approximately 1.5 million barrels per day, more effectively and increase the amount of Iraqi oil reaching Ceyhan. In the coming period, oil extracted in Kuwait and other Gulf countries is also planned to be transported to global markets through this route.

Energy corridor goal

Transporting larger volumes of Iraqi oil to international markets through Ceyhan could support Türkiye’s goal of becoming an energy corridor between producer countries and Western markets. Disruptions and regional risks affecting oil transportation through the Strait of Hormuz are increasing the importance of alternative export routes.

Energy cooperation between Türkiye and Iraq is not limited to oil transportation. While Türkiye aims to increase its oil and natural gas production to 1 million barrels per day in the medium term, the production of the Turkish Petroleum Corporation is expected to reach approximately 500,000 barrels per day by 2028.

TPAO acquires 15 percent stake in Kirkuk fields

On July 28, TPAO acquired a 15 percent stake in bp Energy Company of Kirkuk Limited, becoming a partner in the development of oil fields in Kirkuk. Under the agreement, TPAO, bp and ConocoPhillips plan to work together to increase production at the Baba and Avana structures and the Bai Hasan, Cembur and Hubbaz fields.

This cooperation, extending from production to transportation, brings together Türkiye’s goal of increasing its oil and natural gas production with plans to establish a broader energy corridor centered on Ceyhan. Transporting oil from Iraq and the Gulf countries to global markets through Ceyhan could increase the terminal’s regional importance.

1 million-barrel daily target assessed

Serçan Çalışkan, an Iraq researcher at ORSAM, said al-Zaydi’s announcement on supplying up to 1 million barrels of oil per day demonstrated the shared political will of Ankara and Baghdad to develop energy cooperation. Çalışkan said organizing an additional oil flow of this volume could be technically difficult in the short term, but that the two countries’ willingness to expand existing capacity could shorten the time needed to reach the target.

According to Çalışkan, delivering larger quantities of Iraqi oil to global markets through Ceyhan could strengthen Türkiye’s goal of becoming an energy hub and create an alternative route that could partially reduce dependence on the Strait of Hormuz. Çalışkan said Türkiye-Iraq energy cooperation therefore also carries geostrategic importance in addition to its economic dimension.

Pipeline capacity considered sufficient

Oğuzhan Akyener, president of TESPAM, said the Iraq-Türkiye Oil Pipeline has a technical capacity of approximately 1.5 million barrels per day, making it technically possible to transport 1 million barrels of oil per day in a short period.

Akyener noted that the decisive factor was not only the pipeline’s capacity but also the availability of sufficient oil that could be directed to Ceyhan. He said the route could carry not only production from northern Iraq but also oil extracted from the country’s central and southern regions.

Stating that the transportation of Iraqi oil through Türkiye could strengthen energy security, Akyener said oil could be transported to Kirkuk from Basra and that the capacity of the pipelines in this direction approached 1 million barrels per day. He said the technical target of 1 million barrels per day could be reached in a short time by adding oil from Basra or the area around Baghdad to northern production.

Akyener also said larger volumes of oil could be received through Ceyhan and stockpiled during periods of instability, while greater participation in energy projects in Iraq could be secured. The arrival of 1 million barrels of Iraqi crude oil per day in Türkiye could constitute an important step toward becoming an energy hub when considered alongside the goal of refining the oil in Türkiye and offering it to international markets as petroleum and petrochemical products.